PARSIPPANY, N.J. (July 21, 2022) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with more than 8,900 hotels in over 95 countries, and Palladium Hotel Group, one of the largest Spanish hotel companies, announced, today, a commercial alliance that will add more than 6,500 rooms to Wyndham’s Registry Collection. The 14 spectacular all-inclusive TRS Hotels and Grand Palladium Hotels & Resorts managed by Palladium Hotel Group are located in Mexico, Dominican Republic, Jamaica, and Brazil and will join Wyndham’s portfolio under a long-term agreement leveraging Wyndham’s extensive distribution and bringing Wyndham’s all-inclusive resort portfolio to 26 hotels.
“Expanding Registry Collection Hotels continues Wyndham’s global growth in the luxury space and grants more travelers access to new, preeminent experiences in some of the most remarkable destinations,” said Geoffrey A. Ballotti, president and chief executive officer of Wyndham Hotels & Resorts. “These unique, all-inclusive hotels are designed to ensure that guests – whether redeeming Wyndham Rewards points or booking directly – will enjoy an elevated vacation.”
“This agreement with a hotel company that has one of the greatest distribution capacities in the United States is a great pairing for us” – said Jesús Sobrino, CEO of Palladium Hotel Group – “This alliance is part of our commitment to the American market due to its proximity and great air connectivity with the Caribbean destinations where we operate. We are also very pleased to add synergies between our Palladium Rewards program and Wyndham Rewards®, recognized as one of the top loyalty programs in the industry. As a hotel management company, thanks to this agreement, we improve our value proposition to owners, as we add to it a great know-how and experience of operating all-inclusive resorts in the Caribbean.”
Registry Collection Hotels is a selection of hotels handpicked for their incredible experiences in spectacular destinations with an unmistakable individuality, elevated by thoughtful design and world-class service, key values shared by Palladium Hotel Group’s brands. As part of the agreement, Palladium Hotel Group’s two all-inclusive luxury brands Grand Palladium Hotels & Resorts and TRS Hotels will join Wyndham’s leading luxury Registry Collection brand. These include:
Family All-Inclusive Vacations with Grand Palladium Hotels & Resorts: the hotels offer an all-inclusive experience with a wide array of sports and leisure activities, entertainment, excellent dining options and extensive services and facilities for families, couples and business groups.
Adults Only All-Inclusive Luxury Resorts with TRS Hotels: a great adults-only experience with exclusive butler service and personalized attention for couples and single travelers around the world.
Through this alliance, both companies seek to strengthen their leadership position in the region and to continue expanding while delivering high-quality standards in key tourist destinations in the Caribbean. By joining the Registry Collection, Palladium Hotel Group’s hotels will maintain their spirit and unique individuality while tapping into the global scale of Wyndham Hotels & Resorts and the award-winning Wyndham Rewards® loyalty program with more than 94 million enrolled members. At the same time, Wyndham Hotels & Resorts will benefit from Palladium Hotel Group’s long history as a hotel management company in 5-star all-inclusive resorts in America and especially in the Caribbean.
The first four properties to join Registry Collection Hotels under this alliance include:
Grand Palladium Colonial Resort & Spa, Grand Palladium Kantenah Resort & Spa and Grand Palladium White Sand Resort & Spa in Riviera Maya (Mexico): situated along the stunning coast of the Riviera Maya, the resort complex is located between Playa del Carmen and Tulum. These three hotels are an all-inclusive hideaway ideal for couples or friends looking for a tranquil vacation, or families seeking a memorable adventure. The property features 1,100 fully equipped spacious rooms, as well as a gastronomy wide offer, including nine restaurants à la carte, twenty-one themed bars, six freshwater pools, a range of activities thoughtfully created for families, as well as the impressive wellness center Zentropia Palladium Spa & Wellness.
TRS Yucatan Hotel in Riviera Maya (Mexico): this 5-star luxury hotel welcomes adults seeking privacy and personalized holidays with butler and 24h room service whilst also offering unlimited access to an exquisite array of global cuisines, top-quality amenities, access to an incredible infinity pool overlooking the azure Caribbean waters, a VIP adults-only beach and the successful Chic Cabaret & Restaurant, a three-hour gastro show with over 20 artists and a varied gourmet menu.
Additional Grand Palladium Hotels & Resorts and TRS Hotels properties upcoming this August and September under the Registry Collection as part of the agreement include:
Cancun – Costa Mujeres, Mexico
Grand Palladium Costa Mujeres Resort & Spa: sitting on Costa Mujeres beach, a stunning destination in one of the most exclusive areas of the Caribbean in the north of Cancun. The resort has 673 suites, 5-star leisure activities and services well-suited for families, couples, groups of friends, or business professionals, a wide variety of cuisine from around the world and Family Selection at Grand Palladium Hotels & Resorts product, with exclusive facilities and VIP treatment for the whole family.
In addition, guests from Grand Palladium Costa Mujeres Resort & Spa have the opportunity to learn tennis from the best at Rafa Nadal Tennis Centre through unique tennis classes based on Rafa Nadal´s personal values and experience.
Riviera Nayarit, Mexico
Grand Palladium Vallarta Resort & Spa: nestled along the picturesque Bay of Banderas in Mexico’s sublime Riviera Nayarit, the 510-room resort offers scenic Pacific Ocean views and a variety of 5-star experiences from a kids’ club and teen club to multiple dining outlets and water-based activities such as catamaran sailing, kayaking, sailing and snorkeling. Families can also enjoy their vacation to the fullest with the Family Selection program including unique facilities for all ages.
Playa Bávaro – Punta Cana, Dominican Republic
Grand Palladium Palace Resort Spa & Casino, Grand Palladium Punta Cana Resort & Spa, and Grand Palladium Bávaro Suites Resort & Spa: located on the seashore of the famous Bávaro Beach, in Punta Cana, the 3-property resort lies in an exotic landscape with lush palm tree plantations, and more than a half mile stretch of pristine white sand with sparkling waters. With 1,621 beautiful and bright guest rooms, multiple gastronomic options with delicious cuisine suited to the most diverse palates, and sea and sand activities, guests will undoubtedly have a fun-filled Caribbean getaway.
TRS Turquesa Hotel: designed exclusively for adult travelers, the resort offers innovative facilities and exceptional spaces, as well as the butler service characteristic of the TRS Hotels brand. Other areas include an adults-only secret pool, beach club, Zentropia Palladium Spa & Wellness center and the new Chic Cabaret & Restaurant, the exquisite multiple-course dinner enjoyed while admiring breath-taking acrobatics, stunning choreography and music from all genres.
Cap Cana – Punta Cana, Dominican Republic
TRS Cap Cana Hotel: this luxury 115-room adults-only property is situated in the most exclusive part of Punta Cana on the east coast of the Dominican Republic. Guests can enhance their experience with the butler and 24-hour room services, the treatments at Zentropia Palladium Spa & Wellness, the extensive variety of exceptional gastronomic experiences featuring five à la carte restaurants as well as to embark on fishing and diving trips from the nearby marina or to visit the amazing Playa Juanillo beach with turquoise water and white sand.
Montego Bay, Jamaica
Grand Palladium Jamaica Resort & Spa and Grand Palladium Lady Hamilton Resort & Spa: found on the Northeast coast of Jamaica, the resort sits between two of the island’s most popular tourist towns, Lucea and Montego Bay. It offers 1,054 spacious, fully-fitted rooms, and grand architecture that embodies the vast natural environment, incorporating one of the largest pools in the Caribbean along with spacious grounds. This 5-star resort offer guests immediate access to the beach, the opportunity to try eleven restaurants and fifteen unique themed bars, to enjoy several entertainment options for all ages or to relax at Zentropia Palladium Spa & Wellness.
Imbassaí, Brazil
Grand Palladium Imbassaí Resort & Spa: tucked within the lush Imbassaí nature reserve, this resort is set in the idyllic Praia do Forte. The hotel is famous for its excellent facilities and top-quality services with a variety of international dishes at six restaurant options, four swimming pools and 654 luxury rooms, among others. The resort has celebrated its 10th anniversary this year with the launch of “The Signature Level”, a Palladium Hotel Group’s reinterpretation of the all-inclusive concept, which offers magnificent advantages. With this program guests can enjoy a privileged Bar Ondas, located next to the beach; access to the Segredo Pool with waiter service and Pool Concierge; as well as preferential rates in the beauty and wellness treatments at Zentropia Palladium Wellness & Spa or baby-sitting for the little ones, among other services.
In addition to these properties, the Dominican Fiesta Hotel & Casino in Santo Domingo (Dominican Republic) also managed by Palladium Hotel Group, will be joining Trademark Collection by Wyndham.
Dominican Fiesta Hotel & Casino: set in one of the most elegant and relaxed areas of Santo Domingo, transient and business guests alike can enjoy the resort’s modern features including 271 guest rooms, six restaurants and bars, a swimming pool and sports center with seven tennis courts and a well-equipped spa.
All 15 properties will become part of the award-winning Wyndham Rewards loyalty program, which offers its approximately 94 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties with more than 8,900 hotels across over 95 countries on six continents. Through its network of more than 813,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 22 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 94 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
About Registry Collection Hotels by Wyndham Get lost in your travels and let Registry Collection Hotels meet you there. With thoughtful design, brilliant service and unsurpassed attention to detail, our handpicked hotels and resorts deliver incredible experiences in spectacular destinations around the world. Book your next stay at www.registrycollectionhotels.com or visit www.wyndhamdevelopment.com to learn more about how we’re elevating individuality for independent-minded luxury hotel owners and developers around the world. Registry Collection Hotels are affiliated with, but separate from The Registry Collection, the world’s largest luxury exchange program.
About Trademark Collection by Wyndham Each of Trademark Collection by Wyndham’s upper-midscale-and-above hotels around the world – from landmark hotels in Europe, Asia, The Americas and the Caribbean to its flagship hotel, The Galt House Hotel in Louisville, Ky. – boast three common attributes: character, charm, and individuality. Launched in 2017, Trademark Collection is the first Wyndham-brand geared to three- and four-star hotel owners passionate about upholding their hotels’ independent spirit and designed for everyday travelers seeking distinctive, attainable accommodations in sought-after destinations. For more information, visit www.wyndhamhotels.com/trademark.
About Palladium Hotel Group Palladium Hotel Group is a Spanish hotel chain with over 50 years of experience, owned by Grupo Empresas Matutes (GEM). The group operates 41 hotels and over 13,000 rooms, distributed amongst six countries: Spain, Mexico, Dominican Republic, Jamaica, Italy and Brazil, and manages nine brands: TRS Hotels, Grand Palladium Hotels & Resorts, Palladium Hotels, Palladium Boutique Hotels, Fiesta Hotels & Resorts, Ushuaïa Unexpected Hotels, Only YOU Hotels, BLESS Collection Hotels and the Hard Rock Hotels Brand under license with three hotels in Ibiza Tenerife and Marbella. Palladium Hotel Group is characterized by its philosophy of attention to its team and to offering its clients high quality products and services. www.palladiumhotelgroup.com
Global Development Pipeline and First Quarter Domestic RevPAR Grow to Record Levels
PARSIPPANY, N.J., April 26, 2022 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2022. Highlights include:
Global RevPAR grew 39% compared to first quarter 2021 in constant currency.
System-wide rooms grew 200 basis points year-over-year, including 120 basis points of growth in the U.S. and 330 basis points of growth internationally.
Diluted earnings per share of $1.14 compared to $0.26 in the first quarter 2021; adjusted diluted earnings per share increased to $0.95 compared to $0.36 in first quarter 2021.
Net income of $106 million compared to $24 million in first quarter 2021; adjusted net income of $88 million compared to $33 million in first quarter 2021.
Adjusted EBITDA of $159 million compared to $97 million in first quarter 2021.
Net cash provided by operating activities of $135 million compared to $64 million in first quarter 2021; free cash flow of $125 million compared to $59 million in first quarter 2021.
Completed the exit of its select-service management business.
Completed the sale of the Wyndham Grand Bonnet Creek Resort; the Wyndham Grand Rio Mar Resort is under contract and expected to close in May 2022.
Returned $68 million to shareholders through $38 million of share repurchases and a quarterly cash dividend of $0.32 per share.
“Our exemplary first quarter results demonstrate the power of our brands and the value we are driving to our owners, guests, and shareholders,” said Geoffrey A. Ballotti, president and chief executive officer. “Strong leisure and everyday business travel demand drove RevPAR 4% above 2019 levels domestically and we continued to simplify our operations by exiting our select-service management business and selling one of our two owned assets. Our development pipeline increased 9% to a record 204,000 rooms, including the first 50 deals for our new extended-stay product, and our room openings grew 50% more than last year, putting us solidly on track with our full year net-room growth guidance.”
Fee-related and other revenues increased 36% year-over-year to $316 million primarily reflecting strong ADR growth in the U.S.
The Company generated net income of $106 million, or $1.14 per diluted share, an increase of $82 million, or $0.88 per diluted share, reflecting higher adjusted EBITDA, a gain on the sale of the Wyndham Grand Bonnet Creek Resort and lower net interest expense. Adjusted EBITDA increased $62 million, or 64%, versus 2021 to $159 million reflecting higher revenue and a favorable timing benefit from the marketing fund, partially offset by higher variable expenses at the Company’s owned hotels.
During the first quarter 2022, the Company’s marketing fund revenues exceeded expenses by $7 million; while in first quarter 2021, the Company’s marketing fund expenses exceeded revenues by $7 million.
Full reconciliations of GAAP results to the Company’s non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
System Size
The Company’s global system grew 200 basis points, reflecting 120 basis points of growth in the U.S. and 330 basis points of growth internationally. As expected, these increases included strong growth in both the higher RevPAR midscale and above segments in the U.S. and the direct franchising business in China, which grew 6% and 12%, respectively. The Company remains solidly on track with its goal of achieving a retention rate above 95% and its net room growth outlook of 2 to 4% for the full year 2022.
RevPAR
First quarter RevPAR grew 39% globally in constant currency, including 38% growth in the U.S. and 46% growth internationally. The increase is approximately two-thirds driven by stronger pricing power and one-third driven by higher occupancy levels.
Business Segment Discussion
Hotel Management revenues increased 5% year-over-year to $99 million, including a $16 million decrease in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues increased $21 million, or 91%, to $44 million primarily due to the global RevPAR increase and improved performance at the Company’s owned hotels. Hotel Management adjusted EBITDA increased $15 million year-over-year reflecting the revenue increases, partially offset by higher variable expenses at the Company’s owned hotels.Hotel Franchising revenues increased 30% year-over-year to $272 million primarily due to the global RevPAR increase. Hotel Franchising adjusted EBITDA increased 48% to $155 million reflecting the growth in revenues and a timing benefit from the marketing fund.
Development
The Company awarded 165 new contracts this quarter, including 50 new construction projects for the Company’s new extended-stay brand, compared to 112 in the first quarter 2021. On March 31, 2022, the Company’s global development pipeline consisted of approximately 1,600 hotels and approximately 204,000 rooms, of which approximately 80% is in the midscale and above segments (nearly 70% in the U.S.). The pipeline grew 9% year-over-year, including 12% domestically and 7% internationally. Approximately 63% of the Company’s development pipeline is international and 79% is new construction, of which approximately 35% has broken ground.
Exit of Select-Service Management Business
On March 3, 2022, the Company completed the exit of its select-service management business and received proceeds of $84 million from CorePoint Lodging (“CPLG”). The franchise agreements for these hotels remained in-place at their stated fee structure with CPLG’s buyer, Highgate Holdings, Inc. The proceeds received were offset on the Company’s income statement by the non-cash write-off of the remaining balance of the management contract intangible asset that was created upon the acquisition of La Quinta Holdings in 2018.
Sale of Owned Hotels
On March 24, 2022, the Company completed the sale of the Wyndham Grand Bonnet Creek Resort in Orlando for gross proceeds of approximately $121 million and recognized a $36 million gain on sale, which has been excluded from Adjusted EBITDA. The Company entered into a 20-year franchise agreement with the buyer.
The Company is under contract and expects to complete the sale of the Wyndham Grand Rio Mar Resort in Puerto Rico in May 2022. The Company expects to enter into a 20-year franchise agreement with the buyer in connection with the sale.
Balance Sheet and Liquidity
The Company generated $135 million of net cash provided by operating activities in the first quarter of 2022 and $125 million of free cash flow. The Company ended the quarter with a cash balance of $416 million, including $84 million of proceeds received in connection with the Company’s exit of its select-service management business and gross proceeds of approximately $121 million received in connection with its sale of the Wyndham Grand Bonnet Creek Resort. These inflows are reflected within the investing section of the Statement of Cash Flows and therefore not included in the Company’s free cash flow.
At March 31, 2022, the Company had approximately $1.2 billion in total liquidity and its net debt leverage ratio was 2.6 times, below the Company’s 3 to 4 times stated target range. Excluding the proceeds received in connection with the exit of its select-service management business and the sale of the Wyndham Grand Bonnet Creek Resort, which are expected to be redeployed, the net debt leverage ratio was 2.9 times.
In April 2022, the Company amended its $750 million revolving credit facility, extending the maturity from May 2023 to April 2027 on similar terms as the previous facility, and issued a new $400 million senior secured Term Loan A facility, which matures in April 2027. The proceeds from the Term Loan A were used to repay a portion of the Company’s existing Term Loan B facility, which is scheduled to mature in May 2025. There was no increase in rates from the Term Loan B to the new Term Loan A.
Share Repurchases and Dividends
During the first quarter of 2022, the Company repurchased approximately 455,100 shares of its common stock for $38 million at an average price of $83.72 per share.
The Company paid common stock dividends of $30 million, or $0.32 per share, in the first quarter of 2022.
Full-Year 2022 Outlook
The Company is updating its outlook as follows:
(a) Reflects the removal of post-sale revenues related to the Wyndham Grand Bonnet Creek and Wyndham Grand Rio Mar from prior projections.
(b) Reflects the removal from prior projections of depreciation related to the Wyndham Grand Bonnet Creek and Wyndham Grand Rio Mar.
(c) Represents the percentage of adjusted EBITDA that is expected to produce free cash flow.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Wednesday, April 27, 2022 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 866 831-8713 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on April 27, 2022. A telephone replay will be available for approximately ten days beginning at noon ET on April 27, 2022 at 800 839-4992.
Presentation of Financial Information Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company’s ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across over 95 countries on six continents. Through its network of over 813,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 22 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. The Company’s award-winning Wyndham Rewards loyalty program offers approximately 94 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements related to the Company’s current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures, share repurchases and dividends, restructuring charges and statements related to the coronavirus pandemic (“COVID-19”). Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time the Company makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “objective,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from COVID-19, its scope, duration, resurgence and impact on the Company’s business operations, financial results, cash flows and liquidity, as well as the impact on the Company’s franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s performance during the recovery from COVID-19 and any resurgence or mutations of the virus; various actions governments, businesses and individuals continue to take in response to the pandemic, including stay-in-place directives (including, for instance, quarantine and isolation guidelines and mandates), safety mitigation guidance, as well as the timing, availability and adoption rates of vaccinations, booster shots and other treatments for COVID-19; concerns with or threats of other pandemics, contagious diseases or health epidemics, including the effects of COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; risks related to restructuring or strategic initiatives; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital; and the Company’s ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Kicking off today, Wyndham Rewards members can unlock weekly surprise offers during “Member Month,” including hotel discounts, bonus point offers and more.
PARSIPPANY, N.J. – (March 2, 2022) – Wyndham Rewards®, the world’s most generous rewards program spanning more than 50,000 hotels, vacation club resorts and vacation rentals, today announced the return of “Member Month,” a month-long celebration of Wyndham Rewards members featuring five weeks of exciting deals and discounts, available exclusively to members.
Every Wednesday throughout the month of March, Wyndham Rewards members can unlock a new surprise offer. Whether embarking on a bucket-list adventure or staying closer to home, Member Month rewards every type of traveler – with offers ranging from a mix of stay-based and at-home discounts, bonus point promotions and more. These weekly offers are available to all members globally—even those who enroll during the window of the promotion—and are stackable with other offers throughout the month.
“Member Month is all about celebrating and rewarding our Wyndham Rewards members,” said Lisa Checchio, chief marketing officer, Wyndham Hotels & Resorts. “Last year, we handed out more than 600 million points alongside some of our richest offers; this year, we’re looking to top that number with five weeks of exclusive deals. It’s our way of saying thank you to all those members who, year-in and year-out, have helped make our program number one.”
The first Member Month offer drops today with a 40% bonus on purchased points before April 3, 2022 (Minimum point purchase required). Members can purchase up to 45,000 points per year at www.wyndhamrewards.com or via Wyndham’s mobile app, available for iOS and Android.
The latest Member Month offers, including terms and conditions on each offer are available for members at www.wyndhamrewards.com/membermonth. New deals launch every Wednesday in March and there is no limit to the number of deals members can take advantage of during the promotion.
About Wyndham Rewards
Named the number one hotel rewards program by readers of USA TODAY, Wyndham Rewards® is the world’s most generous rewards program with more than 50,000 hotels, vacation club resorts and vacation rentals worldwide. Designed for the everyday traveler, members earn a guaranteed 1,000 points with every qualified stay and may redeem points for a wide-range of rewards, including free nights at any of approximately 9,000 hotels or tens of thousands of vacation club resorts and vacation rentals globally through affiliation with Wyndham Destinations and others. Wyndham Rewards has over 92 million enrolled members around the globe. Join for free today at www.wyndhamrewards.com. You’ve earned this.®
Panama City’s iconic financial center hotel joins Wyndham’s prestigious new luxury brand.
The hotel is now part of the Registry Collection Hotels brand, a collection of hotels and resorts individually selected to offer incredible experiences in spectacular destinations.
With one of the best locations for sightseeing and enjoying entertainment, Bristol Panama becomes the latest symbol of exceptional/stellar Panamanian hospitality.
PARSIPPANY, N.J. (October 9, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,000 hotels across nearly 95 countries, welcomes The Bristol Panama, a Registry Collection Hotel to the company’s growing portfolio. This elegant and award-winning luxury hotel is the second hotel to join its recently-unveiled brand, Registry Collection Hotels.
Situated in the heart of Panama City’s Financial District, the sophisticated hotel provides easy access to the city’s top attractions like the Old Quarter, Panama Canal, and Biomuseum. With 125 luxurious bedrooms and 48 executive residences, the hotel appeals to business and leisure travelers, corporate groups, and prominent social events, with more than 10,000 square feet of event space including a stylish Ballroom. One of the most recognized hotel in Panama City since it opened its doors in 1997, the elegantly designed property pays homage to Panama’s rich architectural heritage, in a framework set with more than 50 works of modern art by renowned Latin American Artists and the hotel also offers a full-service spa, outdoor swimming pool, and modern Panamanian fusion cuisine.
Bristol Panama a Registry Collection Hotel is managed by VerdeAzul Hotels, a leading Panamanian company in the hotel sector. The hotel has been recognized as one of the 10 best hotels in the Caribbean and Central America by Condé Nast Traveler, by the travel guide “Forbes,” and TripAdvisor’s Travelers Choice Award. For more than 10 years it has been part of the Signature and Virtuoso programs for luxury travelers.
Handpicked to deliver incredible experiences in spectacular destinations, Registry Collection Hotels combine individuality with thoughtful design and world-class service. From unique architectural details to dream-worthy locations, every stay with Registry Collection Hotels is meant to be as unique and indulgent as the hotels themselves. The Bristol Panama, a Registry Collection Hotel, joins Grand Residences Riviera Cancun, a Registry Collection Hotel, which was introduced in June 2021 as the collection’s flagship property.
“With our prestigious new Registry Collection Hotels brand, independent luxury hoteliers can take advantage of Wyndham’s global reach and services,” said Scott LePage, President Americas, Wyndham Hotels & Resorts. “The Bristol Panama is a luxury hospitality icon in Panama City, and we’re honored to welcome the property to the Wyndham portfolio.”
About Bristol Panama, a Registry Collection Hotel Considered one of the most elegant hotels in the city, the Bristol Panama, a Registry Collection Hotel reflects Panama’s rich architectural heritage in an atmosphere of magnificent sophistication in the heart of the financial district. Minutes from many lively and leisurely attractions, the hotel features 125 guestrooms, a Panamanian décor inspired bar and terrace, an outdoor swimming pool and solarium, a locally renowned Spa with breathtaking views and an extraordinary culinary experience inspired in Panamanian cuisine.
About Registry Collection Hotels Get lost in your travels and let Registry Collection Hotels meet you there. With thoughtful design, brilliant service and unsurpassed attention to detail, our handpicked hotels and resorts deliver incredible experiences in spectacular destinations around the world. Book your next stay at www.registrycollectionhotels.com or visit www.wyndhamdevelopment.com to learn more about how we’re elevating individuality for independent-minded luxury hotel owners and developers around the world. Registry Collection Hotels are affiliated with but separate from The Registry Collection, the world’s largest luxury exchange program.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 803,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 22 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers over 90 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
Company Increases Dividend 33% to Pre-Pandemic Level Raises Full-Year 2021 Outlook
PARSIPPANY, N.J., October 27, 2021 – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended September 30, 2021. Highlights include:
S. RevPAR exceeded 2019 levels by 7%, growing 59% versus 2020.
System-wide rooms grew 60 basis points sequentially, including 40 basis points of growth in the U.S. and 80 basis points of growth internationally.
Diluted earnings per share of $1.09 compared to $0.29 in third quarter 2020; adjusted diluted EPS of $1.16 compared to $0.36 in third quarter 2020.
Net income of $103 million compared to $27 million in third quarter 2020; adjusted net income of $109 million compared to $34 million in third quarter 2020.
Adjusted EBITDA of $194 million compared to $103 million in third quarter 2020.
Net cash provided by operating activities of $147 million compared to $97 million in third quarter 2020; free cash flow of $141 million compared to $92 million in third quarter 2020.
Returned $50 million to shareholders in the quarter through $27 million of share repurchases and a quarterly cash dividend of $0.24 per share.
Board of Directors recently authorized a 33% increase in the quarterly cash dividend to pre-pandemic level of $0.32 per share beginning with the dividend expected to be declared in fourth quarter 2021.
Company raises full-year 2021 outlook.
“Our resilient select-service franchising business model continues to lead the industry’s recovery with RevPAR well in excess of 2019 levels. These results have been fueled by the many investments we made over the last two years to capture an increasing share of both leisure and everyday business travel,” said Geoffrey A. Ballotti, president and chief executive officer. “Developer interest in our brands is strong. Our pipeline grew another 440 basis points and is now at pre-pandemic levels. At the same time our teams opened over 50% more rooms than we opened last year, and more rooms than we opened in the third quarter of 2019. Our diversified brand portfolio, now including our newly launched upper midscale all-inclusive brand, Alltra, and compelling owner value proposition, combined with our asset-light business model positions us to deliver strong free cash flow and shareholder returns well into the future.”
Fee-related and other revenues increased 48% to $377 million compared to $255 million in the third quarter of 2020 primarily reflecting the ongoing recovery in travel demand and its impact on global RevPAR, which has now recovered to 97% of 2019 levels, including domestic RevPAR at 7% above 2019.
The Company generated net income of $103 million, or $1.09 per diluted share, compared to net income of $27 million, or $0.29 per diluted share, in the third quarter of 2020. The increase of $76 million, or $0.80 per diluted share, reflects the increase in fee-related and other revenues and lower net interest expense, partially offset by higher volume-related expenses due to the ongoing recovery in travel demand.
The following discussion of third quarter operating results focuses on the Company’s key drivers as well as revenue and adjusted EBITDA for each of the Company’s segments. Full reconciliations of GAAP results to the Company’s non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
System Size
Year-to-date, the Company’s global system grew 80 basis points, reflecting quarter-over-quarter sequential growth of 60 basis points driven by 40 basis points of growth in the U.S. and 80 basis points of growth internationally. Third quarter room openings exceeded 2019 levels by 4% globally reflecting a 46% increase in domestic additions. The Company’s annualized retention rate through third quarter stood at approximately 95%, putting the Company solidly on track with its goal of achieving a 95% retention rate and its net room growth outlook of 1.5 to 2% for the full year 2021.
RevPAR
Global and international RevPAR began to lap the onset of the COVID-19 pandemic in January 2021, while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year, constant currency basis) are more meaningful when evaluating trends. On this basis, third quarter RevPAR in the U.S. exceeded 2019 levels by 7% while global RevPAR recovered to 97% of 2019 levels and international RevPAR declined 25%. The 7% increase in the U.S. represents continued sequential improvement compared to a decline of 5% in the second quarter of 2021. Notably, RevPAR for the Company’s economy brands exceeded 2019 levels by 14% in the third quarter. The 25% international decline demonstrates strong sequential progress from a 44% decline in second quarter led by growth in regions where travel restrictions subsided. Canada improved 32 points to a 17% decline and EMEA improved 43 points to a 25% decline, partially offset by a 10 point sequential decrease to a 17% decline in China due to travel restrictions resulting from local COVID outbreaks in August and September.
Business Segment Results
Hotel Franchising revenues increased 43% year-over-year to $337 million primarily due to the global RevPAR increase. Hotel Franchising adjusted EBITDA increased 62% to $193 million reflecting the growth in revenues as well as a timing benefit from the marketing fund, partially offset by higher volume-related expenses.
Hotel Management revenues increased 25% year-over-year to $126 million, including a $4 million increase in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues increased $21 million, or 111%, to $40 million primarily due to the global RevPAR increase, as well as improved performance at the Company’s owned hotels. Hotel Management adjusted EBITDA increased $14 million year-over-year reflecting the revenue increases, partially offset by higher volume-related expenses, and reflecting significant margin expansion (excluding cost reimbursements) to 40% in 2021 from 11% in 2020.
During the third quarter 2021, the Company’s marketing fund revenues exceeded expenses by $19 million; while in third quarter 2020, the Company’s marketing fund expenses exceeded revenues by $8 million.
Development The Company awarded 151 new contracts this quarter, 3% higher than 2019. On September 30, 2021, the Company’s global development pipeline consisted of over 1,450 hotels and approximately 193,000 rooms. The pipeline grew 440 basis points year-over-year and 120 basis points sequentially – including 90 basis points domestically and 140 basis points internationally. Approximately 65% of the Company’s development pipeline is international and 76% is new construction, of which approximately 34% has broken ground.
Cash and Liquidity The Company generated $147 million of net cash provided by operating activities in the third quarter of 2021 compared to $97 million in third quarter 2020. The Company generated $141 million of free cash flow in the third quarter of 2021 compared to $92 million in the third quarter 2020.
At September 30, 2021, the Company had $193 million of cash on its balance sheet and approximately $930 million in total liquidity. The Company’s net debt leverage ratio was 3.7 times at September 30, 2021 and within the Company’s 3 to 4 times stated target range.
Share Repurchases and Dividends During the third quarter of 2021, the Company repurchased approximately 374,000 shares of its common stock for $27 million at an average price of $73.13 per share.
The Company paid common stock dividends of $23 million, or $0.24 per share, in the third quarter of 2021. The Company’s Board of Directors authorized a 33% increase in the quarterly cash dividend to pre-pandemic level of $0.32 per share, beginning with the dividend expected to be declared in fourth quarter 2021.
2021 Outlook The Company updated its outlook for full-year 2021 as follows:
Net rooms growth of 1.5% to 2% versus our prior outlook of 1% to 2%.
RevPAR growth of approximately 43% versus 2020, or a decline of approximately 14% compared to 2019, which is improved from growth of approximately 40% versus 2020, or a decline of approximately 16% compared to 2019.
Fee-related and other revenues of $1.21 billion to $1.23 billion, up from $1.16 billion to $1.19 billion.
Adjusted EBITDA of $560 million to $570 million, up from $525 million to $535 million.
Adjusted net income of $275 million to $285 million, up from $244 million to $254 million.
Adjusted diluted EPS of $2.93 to $3.03, up from $2.60 to $2.70, based on a diluted share count of 94.0 million that excludes any share repurchases after September 30, 2021.
Free cash conversion from Adjusted EBITDA of approximately 60%, up from approximately 55%.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, October 28, 2021 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9173 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on October 28, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on October 28, 2021 at 800 839-4992.
Company Increases Quarterly Dividend 50% and Provides Full Year 2021 Outlook
PARSIPPANY, N.J. (July 28, 2021) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended June 30, 2021. Highlights include:
Second quarter diluted earnings per share was $0.73 compared to diluted loss per share of $1.86 in second quarter 2020; second quarter adjusted diluted EPS was $0.95 compared to adjusted diluted EPS of $0.10 in second quarter 2020.
Second quarter net income was $68 million compared to a net loss of $174 million in second quarter 2020; second quarter adjusted net income was $89 million compared to adjusted net income of $9 million in second quarter 2020.
Second quarter adjusted EBITDA was $168 million compared to adjusted EBITDA of $66 million in second quarter 2020.
Second quarter net cash provided by operating activities was $116 million and free cash flow was $104 million compared to net cash used in operating activities of $57 million and free cash flow of $(68) million in second quarter 2020.
Global RevPAR increased 110% compared to second quarter 2020 and declined 17% compared to second quarter 2019 in constant currency.
Paid quarterly cash dividend of $0.16 per share in second quarter and Board of Directors recently authorized a 50% increase in the quarterly cash dividend to $0.24 per share beginning with the dividend expected to be declared in third quarter 2021.
Company provides full-year 2021 outlook.
“With continued increasing demand from our leisure and everyday business travelers, our select-service franchise business model generated another strong quarter of adjusted EBITDA and cash flow, allowing us to increase our dividend by 50%,” said Geoffrey A. Ballotti, president and chief executive officer. “Our brands continue to capture market share gains above pre-pandemic levels, while our economy brands here in the U.S. actually exceeded 2019 RevPAR for the quarter. We opened over 70% more rooms than we did last year while growing our development pipeline by 6% vs. prior year, and by 2% sequentially – to over 190,000 rooms. We are extremely proud of all that our team members around the world have achieved, as they remain focused on delivering exceptional value for our owners, guests and shareholders.”
Fee-related and other revenues increased 67% to $321 million, compared to $192 million in the second quarter of 2020 primarily reflecting the ongoing recovery in travel demand and its impact on global RevPAR, which has now recovered to 83% of 2019 levels, including domestic RevPAR at 95% of 2019 levels.
The Company generated net income of $68 million, or $0.73 per diluted share, compared to a net loss of $174 million, or $1.86 loss per diluted share, in the second quarter of 2020. The increase of $242 million, or $2.59 per diluted share, reflects: the ongoing recovery in travel demand; a $10 million, or $0.11 per diluted share, after-tax benefit from the marketing fund related to timing; and the absence of $176 million, or $1.89 per diluted share, after-tax of special-item charges incurred during second quarter 2020. These results were partially offset by a $14 million, or $0.15 per diluted share, after-tax impact in 2021 related to the early extinguishment of the Company’s 5.375% senior unsecured notes.
The following discussion of second quarter operating results focuses on the Company’s key drivers as well as revenue and adjusted EBITDA for each of the Company’s segments. Full reconciliations of GAAP results to the Company’s non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
System Size
During the first half of 2021, the Company’s global system grew 30 basis points primarily reflecting continued growth in the Company’s direct-franchising business in China. This was partially offset by the anticipated decline in domestic system size as conversion and new construction activities continue to ramp-up following the pandemic and recent supply chain delays. Year-to-date deletions ran 27% below 2019 levels putting the Company solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
RevPAR
Global and international RevPAR began to lap the onset of the COVID-19 pandemic in January 2021, while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year, constant currency basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 17% reflecting a 5% decline in the U.S. and a 44% decline internationally. The 5% decline in the U.S. represents continued sequential improvement compared to a decline of 25% in the first quarter of 2021. Importantly, RevPAR for the Company’s economy brands exceeded 2019 levels by 4% in the second quarter. The 44% international decline primarily represents a 68% decline in the Company’s EMEA region and a 7% decline in China.
Business Segment Results
Hotel Franchising revenues increased 55% year-over-year to $283 million, primarily reflecting the global RevPAR increase. Adjusted EBITDA increased 93% to $166 million as the growth in revenues and the timing benefit from the marketing fund was partially offset by higher volume-related expenses.
Hotel Management revenues increased 62% year-over-year to $123 million, reflecting a $19 million increase in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues increased 280% to $38 million, primarily due to the global RevPAR increase, as well as improved performance at the Company’s owned hotels and incremental management contract termination fees resulting from the sale of CorePoint Lodging properties. Hotel Management adjusted EBITDA increased $20 million year-over-year reflecting the revenue increases, partially offset by higher volume-related expenses.
During the second quarter 2021, the Company’s marketing fund revenues exceeded expenses by $14 million; while in second quarter 2020, the Company’s marketing fund expenses exceeded revenues by $3 million. While the Company does not expect the marketing fund to have a significant impact on full year 2021 adjusted EBITDA, there may continue to be timing differences in quarterly comparisons.
Development The Company awarded 154 new contracts this quarter compared to 116 in second quarter 2020 and 173 in second quarter 2019. On June 30, 2021, the Company’s global development pipeline consisted of over 1,400 hotels and over 190,000 rooms. The pipeline grew 580 basis points year-over-year and 170 basis points sequentially – including 70 basis points domestically and 230 basis points internationally. Approximately 64% of the Company’s development pipeline is international and 74% is new construction, of which approximately 34% has broken ground.
Cash and Liquidity The Company generated $116 million of net cash provided by operating activities in the second quarter of 2021 compared to net cash used in operating activities of $57 million in second quarter 2020. Free cash flow increased $172 million year-over-year as the Company generated free cash flow of $104 million in the second quarter of 2021 compared to using $68 million in the second quarter 2020 (which included $33 million of special-item cash outlays).
At June 30, 2021, the Company had $103 million of cash on its balance sheet and approximately $840 million in total liquidity.
Dividends The Company paid common stock dividends of $15 million, or $0.16 per share, in the second quarter of 2021.
The Company’s Board of Directors authorized a 50% increase in the quarterly cash dividend to $0.24 per share from $0.16 per share, beginning with the dividend that is expected to be declared in third quarter 2021.
2021 Outlook The Company provided the following outlook for full-year 2021:
Fee-related and other revenues of $1.16 billion to $1.19 billion.
Adjusted net income of $244 million to $254 million.
Adjusted EBITDA of $525 million to $535 million.
Adjusted diluted EPS of $2.60 to $2.70, based on an adjusted diluted share count of 94.0 million that excludes any future share repurchases.
Rooms growth of 1% to 2%.
A RevPAR increase of approximately 40% versus 2020, or a decline of approximately 16% compared to 2019.
Free cash conversion from Adjusted EBITDA of approximately 55%.
More detailed projections are available in Table 8 of this press release. Outlook assumes continued recovery in travel demand in the second half of 2021. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, July 29, 2021 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9173 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on July 29, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on July 29, 2021 at 800 757-4761.
Presentation of Financial Information Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company’s ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with approximately 9,000 hotels across nearly 95 countries on six continents. Through its network of approximately 798,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 89 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures and dividends, restructuring charges and statements related to the coronavirus pandemic (“COVID-19”). Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “objective,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from COVID-19, its scope, duration and impact on the Company’s business operations, financial results, cash flows and liquidity, as well as the impact on the Company’s franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s performance in any recovery from COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of COVID-19 and any resurgence or mutations of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to restructuring or strategic initiatives; risks related to the Company’s relationship with CorePoint Lodging; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital as a result of COVID-19; and the Company’s ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
PARSIPPANY, N.J. (June 2, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 8,900 hotels across nearly 95 countries, today unveiled its 21st brand, Registry Collection HotelsSM, adding a luxury offering to the upper end of the Company’s growing brand portfolio while further advancing its mission to make hotel travel possible for all.
The launch of Registry Collection Hotels comes at a time when a growing number of independent luxury hotel owners are seeking out proven and established partners to help them recover from the challenges of the global pandemic. Registry Collection Hotels allows these owners to maintain their independent spirit and brand individuality while tapping into the global scale of Wyndham Hotels & Resorts along with its award-winning Wyndham Rewards® loyalty program, helping them to drive more direct bookings at a lower cost of distribution.
“As the hospitality industry continues to rebound, independent luxury hotel owners around the world have approached our development teams seeking sales, marketing and reservations support under a proven and established luxury brand,” said Geoff Ballotti, president and CEO, Wyndham Hotels & Resorts. “The creation of Registry Collection Hotels was a natural fit, given Registry’s growing global recognition as the world’s largest luxury exchange program with over 200 high-end luxury fractional resorts and the continued successful management of that program by our partner Travel + Leisure Co. (formerly Wyndham Destinations). Registry Collection Hotels now fill an important space at the upper end of the Wyndham Hotels & Resorts portfolio, allowing us to very selectively provide support to independent hoteliers around the globe who meet the highest standards of luxury service and accommodations.”
Individuality, Elevated Handpicked to deliver incredible experiences in spectacular destinations, the hallmark of Registry Collection Hotels is the allure of their unmistakable individuality, elevated by thoughtful design and world-class service. From brilliant architectural details paired with serene backdrops to dream-worthy locations, every stay with Registry Collection Hotels is meant to be as unique and indulgent as the hotels themselves.
“We are truly excited about the renewed potential of the global travel, leisure and lifestyle industry, as the world rejoices and reunites after more than a year of lockdowns and restrictions,” said Michael Brown, CEO, Travel + Leisure Co. “Experts and travelers are looking forward to exploring again for curated and exclusive experiences around the world. Launch of Registry Collection Hotels is a natural evolution for Wyndham Hotels & Resorts, building on the brand’s iconic heritage and global network. As Travel + Leisure Co., the world’s leading membership and leisure travel company, with nearly 20 travel brands – including The Registry Collection – we are looking forward to designing a new future for the global leisure industry.”
A White Sand Debut in the Mexican Caribbean Registry Collection Hotels debuts today with the brand’s flagship resort, the exclusive 144-room, all-suite, Grand Residences Riviera Cancun. Nestled on a breathtaking white sand beach just moments from the peaceful fishing village of Puerto Morelos, the secluded resort features spacious and inviting Hacienda-style accommodations, BVLGARI® bath products and exceptional amenities such as an oceanfront infinity pool, full-service spa, state of the art-gym, kids club and three gourmet restaurants. The resort is owned and managed by affiliates of the Royal Resorts® group of companies.
Added Ballotti, “Grand Residences Riviera Cancun is a spectacular resort situated in a pristine spot on one of Mexico’s most desirable beaches. Beloved by guests the world over for its incredible location, postcard views, and world-class service, we couldn’t be more excited to be launching Registry Collection Hotels with one of the region’s premier developers and a long-time customer of Travel + Leisure Co., Dr. Kemil A. Rizk.”
“From day one, the team at Wyndham has been holistically focused on the needs of our resort, working closely with our team as we collaboratively develop our strategy to announce our flagship affiliation,” said Dr. Rizk, president and CEO, Royal Resorts®. “What we value about Wyndham, in addition to their tremendous scale and distribution, is their appreciation for what makes Grand Residences Riviera Cancun unique and their passion for ensuring our individuality is never compromised. The highly esteemed reputation of Wyndham makes us proud to be marking this milestone with them and we look forward to continuing to develop our brand alliance.”
Guests of Grand Residences Riviera Cancun enjoy complimentary private premium airport transportation and can partake in a wide variety of on- and off-site activities, including cooking and mixology classes, yoga, snorkeling, bike tours, fishing charters, catamaran cruises and more. The hotel is available for booking starting today at www.registrycollectionhotels.com.
Unlocking The Power of Wyndham Wyndham Hotels & Resorts has a proven track record of catering to the needs of independent hoteliers, most recently evidenced by the successful launch and robust continued growth of its Trademark Collection® by Wyndham brand. First launched in the summer of 2017, the brand, known for its distinct collection of independent upper midscale and upscale hotels, has since grown its footprint by nearly 75% to now more than 110 hotels across a portfolio spanning North America, Europe, Australia and the Caribbean.
Through Registry Collection Hotels, independent luxury hoteliers are now able to maintain their hotel’s unique individuality while benefiting from the power of scale that comes with being part of the world’s largest hotel company. Owners receive access to an experienced team of hospitality professionals, as well as an in-depth array of services including strategic sourcing, global sales, revenue management, marketing and distribution, operations support and best-in-class training.
Aspirational Stays through Wyndham Rewards Registry Collection Hotels is a part of Wyndham Rewards, Wyndham’s award-winning guest loyalty program, which for the last three years has been named the number one hotel rewards program by readers of USA Today. With aspirational stay opportunities in some of the world’s most desirable destinations, members can earn and redeem points on qualified stays across 21 distinct brands while enjoying a host of perks available exclusively through the program’s various member levels. Wyndham Rewards has 87 million enrolled members around the world and is consistently recognized for its overall simplicity, rich redemption portfolio and generous rewards.
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About Grand Residences Riviera Cancun An affiliate of Registry Collection HotelsSM, the 144-all-suite Grand Residences Riviera Cancun debuted on December 7, 2013. Situated in a private enclave between scenic Riviera Maya and bustling Cancun, this exclusive hideaway is ideally located between the world’s second largest barrier reef and a tranquil nature preserve. This five-star resort sets a new standard in luxury beachfront living: sprawling suites designed as private residences; gourmet dining; a world-class spa and salon; personalized beach and pool service; and much more. The ideal spot for outdoor adventurers, Grand Residences provides guests with experiences of a lifetime such as snorkeling along the world’s longest underground rivers, exploring the historical treasures of ancient Mayan ruins, or simply unwinding on miles of white-sand beaches. For shopping and nightlife, tropical beach hotspot Cancun is only eleven miles away. Grand Residences is owned and managed by affiliates of the Royal Resorts® group of companies, a pioneer in the Mexican Caribbean tourism industry with family-friendly beachfront resorts in Cancun, Puerto Morelos and Riviera Maya. For more information or reservations, call 1.855.381.4340 or visit www.grandresidencesrivieracancun.com.
About Registry Collection Hotels Get lost in your travels and let Registry Collection HotelsSM meet you there. With thoughtful design, brilliant service and unsurpassed attention to detail, our handpicked hotels and resorts deliver incredible experiences in spectacular destinations around the world. Book your next stay at www.registrycollectionhotels.com or visit www.wyndhamdevelopment.com to learn more about how we’re elevating individuality for independent-minded luxury hotel owners and developers around the world. Registry Collection Hotels are affiliated with but separate from The Registry Collection, the world’s largest luxury exchange program.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 21 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 87 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
Company’s global conversion growth continues, generating 70% of global room additions in first quarter as owners recognize company’s loyalty program drives nearly 40% of all hotel stays
PARSIPPANY, N.J. (May 10, 2021) – Wyndham Hotels & Resorts, the world’s largest hotel franchising company with over 8,900 hotels across nearly 95 countries, remains on a steady growth trajectory around the world and is continuing to debut new properties and enter new destinations. In a year of significant challenges for the hospitality industry, Wyndham strengthened its portfolio to generate sequential growth in system size and its development pipeline. The company’s non-urban, drive-to economy and midscale hotels, combined with ongoing investment in sales and marketing, helped capture rising pent-up leisure travel demand, which continued to drive sequential RevPAR improvements and domestic market share gains for franchisees.
In the first quarter of 2021, Wyndham converted 52 independent and branded hotels to one of its 20 brands, accounting for over 70% percent of its global room additions. The brand’s overall development pipeline has continued to expand both domestically and internationally with new conversion opportunities. The company awarded 112 new franchise contracts in the first quarter of 2021, and by March 31 the development pipeline had grown sequentially from Q4 to approximately 1,400 hotels and approximately 187,000 rooms.
“Our portfolio of iconic hotel brands offers a wide range of experiences and price points for guests as well as strong opportunities for franchisees and developers,” said Geoffrey A. Ballotti, president and chief executive officer, Wyndham Hotels & Resorts. “Our global sales, marketing and loyalty teams are looking forward to helping more travelers discover all these new hotels.”
A selection of the company’s recent hotel conversions to date are noted below by region.
Americas
Wyndham signed a nine-hotel franchise agreement in Q1 with The Thrash Group for its namesake, upscale, Wyndham® brand in the U.S. The nine hotels, all managed by Charlestowne Hotels, span across the U.S. and include a mix of lifestyle-focused boutique hotels, historic hotels and new construction hotels scheduled to open later this year and next. “Converting our hotels to Wyndham has allowed us access to new resources and further opportunities, which supports us in running our business proficiently,” said Ike Thrash, founding partner, The Thrash Group. “That paired with the award-winning brand’s recognition will help contribute to my Thrash’s overall success and hopefully further development of additional Wyndham properties.”
In downtown San Francisco, The BEI Hotel in San Francisco, is another recent conversion for the Trademark Collection that is scheduled to open in May. Located by the Financial District and Union Square, guests can stay in the heart of the city and enjoy well-appointed guest rooms, a fitness center and other inviting amenities. Just 14 miles from San Francisco International Airport and 20 miles from Oakland International Airport, this contemporary, hotel is surrounded by world-class restaurants and minutes from Civic Center Plaza, Moscone Center, and Union Square. And on Long Island, N.Y., the award winning and LEED certified Viana Hotel & Spa converted to a Trademark by Wyndham.
New conversion hotels in the Caribbean include the Kunuku Resort All Inclusive in Curacao along with the Turtle Island Beach Resort, in Belize — both of which are converting to Trademark Collection by Wyndham. The most recently awarded Caribbean franchise contract is to The Buccaneer Beach & Golf Resort in St. Croix, an upscale property that will be converting to Wyndham’s Trademark Collection and mark the first Wyndham Hotels & Resorts property in St. Croix. The family owned and operated 340-acre resort is the island’s only four-star resort, offering 130 guest-rooms and suites.
In Latin America, TRYP by Wyndham Guayaquil, Ecuador was recently converted to a Wyndham as part of the company’s urban lifestyle brand. The centrally located hotel is steps away from the city’s top dining venues, the Mall del Sol and the Guayaquil Convention Center.
Asia Pacific
In Asia Pacific, the Company’s expansion continues where the number of its executed deals in the pipeline are nearly 50% larger than it was a year ago. Conversion activity was strong, with a 5 star hotel in Xin Yang Henan Province, China converting to the Wyndham Xin Yang. The company also recently welcomed the Ramada Encore by Wyndham Shanghai Pudong Airport. With more than 1,500 hotels in 20 regional markets and territories, the company is in a leading position within the region and is on track to reach 2,000 hotels in Asia Pacific within the next three years.
Europe
In Europe, the recent March opening of Hotel Avenue Louise Brussels, Trademark Collection by Wyndham marked Wyndham’s first Trademark Collection hotel in Belgium. The 78-room stylish hotel underwent a $3.1 million refurbishment and offers guests the perfect balance between comfort and local charm in the heart of Brussels.
Middle East
The debut of the very first La Quinta by Wyndham brand in the Middle East was will be made with the 100-room La Quinta by Wyndham Dubai Bur Dubai, in one of the city’s bustling commercial hubs offering easy access to leisure attractions. The newly refurbished hotel will open in May boasting contemporary guest rooms and elegant interiors.
Interested developers can visit the Wyndham Franchise Development website, or contact the Wyndham Franchise Development team by email at [email protected] for more information.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award winning Wyndham Rewards loyalty program offers 87 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com.
This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws, including the expected addition of hotels within the Asia Pacific Region and similar statements concerning possible future results or performance. You are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future results or performance, speak only as of the date of this press release and are subject to numerous risks and uncertainties, including the risks described in Wyndham Hotels’ most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission, any of which could cause actual results or performance to be materially different from the future results or performance expressed or implied by such forward-looking statements. Except as required by law, Wyndham Hotels undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
We are extremely concerned and saddened about the growing humanitarian crisis in India resulting from the rapid spread of COVID-19 cases. Wyndham Hotels & Resorts is donating $100,000 to the Indian Red Cross Society, which is working alongside authorities to help the people of India by rushing urgently needed supplies and equipment to critical care centers.
We are also working to collaborate with industry associations on broader efforts to raise funds to support India through this crisis and call on others to show their support with matching funds. We have made it possible for Wyndham Rewards members to help by donating points to Save the Children and Christel House, which support families and children in India. Our team members are supporting their colleagues in India through our Wyndham Relief Fund and can also donate directly to a number of qualified 501(c)(3) organizations with a company match. Our team members around the world stand united with our hotel owners, our local colleagues and the broader Indian community.
PARSIPPANY, N.J. (April 28, 2021) – Wyndham Hotels & Resorts (NYSE: WH) today announced results for the three months ended March 31, 2021. Highlights include:
Diluted earnings per share was $0.26, and adjusted diluted earnings per share was $0.36.
Net income was $24 million and adjusted net income was $33 million.
Adjusted EBITDA was $97 million.
Generated $64 million of net cash provided by operating activities and $59 million of free cash flow.
Global RevPAR declined 11% compared to first quarter 2020 and 31% compared to first quarter 2019 in constant currency.
Paid quarterly cash dividend of $0.16 per share.
Redeemed all $500 million aggregate principal amount of its outstanding 5.375% Senior Notes due 2026 on April 15, 2021.
Company updates its previous 2021 projections.
“Wyndham’s select-service franchise business model delivered a strong start to 2021 as leisure customers hit the road at a pace not experienced since the pandemic started and demand from our everyday business travelers continued to accelerate,” said Geoffrey A. Ballotti, president and chief executive officer. “We were very pleased to see our development pipelines grow sequentially, both domestically and internationally, and our room openings and deletions improve year-over-year. We were also encouraged to see conversion room openings increase year-over-year, representing over 70% of total openings this quarter.”
Revenues declined from $410 million in the first quarter of 2020 to $303 million in the first quarter of 2021. The decline includes lower pass-through cost-reimbursement revenues of $55 million in the Company’s hotel management business, which have no impact on adjusted EBITDA. Excluding cost-reimbursement revenues, revenues declined $52 million primarily reflecting an 11% decline in constant-currency global RevPAR.
The Company generated net income of $24 million, or $0.26 per diluted share, compared to $22 million, or $0.23 per diluted share, in the first quarter of 2020. The increase of $2 million, or $0.03 per diluted share, was a result of the Company’s COVID-19 cost mitigation plan implemented in April 2020, lower volume-related expenses and the absence of restructuring and transaction-related expenses, which were partially offset by the global RevPAR decline.
The following discussion of first quarter operating results focuses on the Company’s key drivers as well as revenue and adjusted EBITDA for each of the Company’s segments. Full reconciliations of GAAP results to the Company’s non-GAAP adjusted measures for all reported periods appear in the tables to this press release.
System Size During the first quarter of 2021, the Company’s global system grew 20 basis points reflecting strong growth in the Company’s direct-franchising business in China, primarily offset by the impact from supply chain delays on new construction openings in the United States. As expected, terminations normalized in the first quarter and the Company remains solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
RevPARGlobal and International RevPAR began to lap the onset of the COVID-19 pandemic in January 2021 while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 31% reflecting a 25% decline in the U.S. and a 45% decline internationally. The 25% decline in the U.S. represents continued sequential improvement compared to a decline of 31% in the fourth quarter of 2020. The 45% decline internationally is consistent with the fourth quarter 2020 performance.
Business Segment ResultsHotel Franchising revenues decreased $34 million year-over-year reflecting the global RevPAR decline, while adjusted EBITDA declined $5 million as the impact of the RevPAR decline was almost entirely offset by the Company’s COVID-19 cost mitigation plan implemented in April 2020 and lower volume-related expenses.
Hotel Management revenues decreased $73 million year-over-year reflecting a $55 million reduction in cost-reimbursement revenues, which have no impact on adjusted EBITDA. Absent cost-reimbursements, Hotel Management revenues decreased $18 million due to the global RevPAR decline and lower termination fees. Adjusted EBITDA declined $12 million year-over-year reflecting the revenue decrease, partially offset by lower volume-related expenses.
Development The Company awarded 112 new contracts this quarter compared to 115 in first quarter 2020 and 124 in first quarter 2019. At March 31, 2021, the Company’s development pipeline consisted of approximately 1,400 hotels and approximately 187,000 rooms, growing sequentially by 120 basis points, 70 basis points domestically and 150 basis points internationally. Approximately 64% of the Company’s development pipeline is international and 75% is new construction. Approximately 34% of the new construction pipeline under development has broken ground.
Cash and Liquidity The Company generated $64 million of net cash provided by operating activities in the first quarter of 2021 compared to $17 million in first quarter 2020. Free cash flow was $59 million in the first quarter of 2021 compared to $10 million (which included $15 million of special-item cash outlays) in first quarter 2020.
At March 31, 2021, the Company had $531 million of cash on its balance sheet and $1.3 billion in total liquidity. In April 2021, the Company redeemed all $500 million aggregate principal amount of its outstanding 5.375% senior notes due 2026, which also reduced the Company’s total liquidity to approximately $750 million. The Company expects this redemption to reduce its annual cash interest expense by approximately $27 million. Coupled with the issuance of 4.375% senior notes in August of 2020, this redemption effectively returns the Company to pre-pandemic debt and liquidity levels while extending $500 million of maturity by approximately 2.5 years at a 100 basis point (or 19%) lower interest rate.
Dividends The Company paid common stock dividends of $15 million, or $0.16 per share, in the first quarter of 2021.
2021 Projections The Company is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead; however, the Company is updating the projections provided in February:
Net rooms growth of 1% to 2%, consistent with February’s projection.
Every point of RevPAR change versus 2020 is now expected to generate approximately $2.8 million of adjusted EBITDA change versus 2020 (increased from $2.5 million per point in February).
License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements, consistent with February’s projection.
Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues, consistent with February’s projection. As such, the Company expects no meaningful impact to full-year 2021 adjusted EBITDA from the marketing, reservation and loyalty funds.
The Company does not expect any meaningful special-item cash outlays in 2021, consistent with February’s projection.
More detailed projections are available in Table 8 of this press release. The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.
Conference Call Information Wyndham Hotels will hold a conference call with investors to discuss the Company’s results and outlook on Thursday, April 29, 2021 at 8:30 a.m. ET. Listeners can access the webcast live through the Company’s website at www.investor.wyndhamhotels.com. The conference call may also be accessed by dialing 877 876-9174 and providing the passcode “Wyndham”. Listeners are urged to call at least five minutes prior to the scheduled start time. An archive of this webcast will be available on the website beginning at noon ET on April 29, 2021. A telephone replay will be available for approximately ten days beginning at noon ET on April 29, 2021 at 800 723-0549.
Presentation of Financial Information Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company’s ongoing operating performance. The Company uses these measures internally to assess its operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. Exclusion of items in the Company’s non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
About Wyndham Hotels & Resorts Wyndham Hotels & Resorts (NYSE: WH) is the world’s largest hotel franchising company by the number of properties, with over 8,900 hotels across nearly 95 countries on six continents. Through its network of over 797,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company’s award-winning Wyndham Rewards loyalty program offers 87 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally. For more information, visit www.wyndhamhotels.com. The Company may use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Disclosures of this nature will be included on the Company’s website in the Investors section, which can currently be accessed at www.investor.wyndhamhotels.com. Accordingly, investors should monitor this section of the Company’s website in addition to following the Company’s press releases, filings submitted with the Securities and Exchange Commission and any public conference calls or webcasts.
Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the federal securities laws, including statements related to Wyndham Hotels’ current views and expectations with respect to its future performance and operations, including revenues, earnings, cash flow and other financial and operating measures and dividends, restructuring charges and statements related to the coronavirus pandemic (“COVID-19”). Forward-looking statements include those that convey management’s expectations as to the future based on plans, estimates and projections at the time Wyndham Hotels makes the statements and may be identified by words such as “will,” “expect,” “believe,” “plan,” “anticipate,” “intend,” “goal,” “future,” “outlook,” “guidance,” “target,” “objective,” “estimate,” “projection” and similar words or expressions, including the negative version of such words and expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Hotels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from COVID-19, its scope, duration and impact on the Company’s business operations, financial results, cash flows and liquidity, as well as the impact on the Company’s franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company’s mitigation efforts in response to COVID-19; the Company’s performance in any recovery from COVID-19; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company’s relationships with franchisees and property owners; the impact of war, terrorist activity, political instability or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of COVID-19 and any resurgence or mutations of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to restructuring or strategic initiatives; risks related to the Company’s relationship with CorePoint Lodging; the Company’s ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with the covenants thereunder; risks related to the Company’s ability to obtain financing and the terms of such financing, including access to liquidity and capital as a result of COVID-19; and the Company’s ability to make or pay, plans for, and the timing and amount of any future share repurchases and/or dividends, as well as the risks described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Global and international RevPAR began to lap the onset of the COVID-19 pandemic in January 2021, while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year, constant currency basis) are more meaningful when evaluating trends. On this basis, third quarter RevPAR in the U.S. exceeded 2019 levels by 7% while global RevPAR recovered to 97% of 2019 levels and international RevPAR declined 25%. The 7% increase in the U.S. represents continued sequential improvement compared to a decline of 5% in the second quarter of 2021. Notably, RevPAR for the Company’s economy brands exceeded 2019 levels by 14% in the third quarter. The 25% international decline demonstrates strong sequential progress from a 44% decline in second quarter led by growth in regions where travel restrictions subsided. Canada improved 32 points to a 17% decline and EMEA improved 43 points to a 25% decline, partially offset by a 10 point sequential decrease to a 17% decline in China due to travel restrictions resulting from local COVID outbreaks in August and September.
During the first quarter of 2021, the Company’s global system grew 20 basis points reflecting strong growth in the Company’s direct-franchising business in China, primarily offset by the impact from supply chain delays on new construction openings in the United States. As expected, terminations normalized in the first quarter and the Company remains solidly on track with its goal of achieving a 95% retention rate for the full year 2021.
Global and International RevPAR began to lap the onset of the COVID-19 pandemic in January 2021 while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a two-year basis) are more meaningful when evaluating trends. On this basis, global RevPAR declined 31% reflecting a 25% decline in the U.S. and a 45% decline internationally. The 25% decline in the U.S. represents continued sequential improvement compared to a decline of 31% in the fourth quarter of 2020. The 45% decline internationally is consistent with the fourth quarter 2020 performance.
Hotel Franchising revenues decreased $34 million year-over-year reflecting the global RevPAR decline, while adjusted EBITDA declined $5 million as the impact of the RevPAR decline was almost entirely offset by the Company’s COVID-19 cost mitigation plan implemented in April 2020 and lower volume-related expenses.
